28th Sep 2015 09:07
LONDON (Alliance News) - Hague and London Oil PLC Monday said it is focused on conducting a natural gas appraisal programme on its newly acquired Duyung project in Indonesia in 2016 as it reported a slightly wider loss in the first half of 2015.
The exploration company reported a GBP761,284 pretax loss in the first six months of 2015, widening from the GBP666,353 loss a year earlier after the company.
That was the result of finance income dropping to GBP972,000 from GBP2.2 million a year earlier and because a GBP265,813 gain from its joint ventures a year ago was not repeated in the half. They were partially offset by administrative expenses falling to GBP762,256 from GBP934,337.
The most significant activity in the half was Hague's agreement to acquire an 85% stake in the Duyung production sharing contract in Indonesia, which contains the Mako gas discovery. It also acquired a 15% stake in the SC54A licence in the Philippines as the company moves its focus to South-East Asia.
Hague also secured three offshore UK blocks in the period and the company said it has almost completed the 3D seismic data work.
At the end of the period, Hague reported a cash balance of GBP950,000, and said its existing commitments for the remainder of 2015 are fully funded.
"The primary challenges ahead will be delivering on a successful operations plan for Duyung in 2016 while Hague & London Oil transitions to become a fully-fledged operator in Southeast Asia, whilst maintaining the same cost discipline followed to date," said Hague.
"The company believes that through the acquisition of Duyung more, value-accretive, opportunities will become available to Hague & London Oil in the coming year," it added.
Hague and London shares were down 3% to 13.95 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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